Nagaland’s aggregate AT&C losses in power sector highest in India

March 19, 2023 34 Views No Comment

Morung Express News
Dimapur | March 19

At 60.39%, the Department of Power, Nagaland (DoPN) reported the highest aggregate Technical & Commercial (AT&C) loss among power distributors (or DISCOMS) in India in 2020-21. The figure was nearly thrice the national average, the Rajya Sabha was informed on March 14.

The All-India AT&C loss in the electricity sector during the same period was 22.32%.

The State-wise date provided by the Union Minister of Power and New & Renewable Energy, RK Singh in a written reply further highlighted that AT&C losses saw the highest surge from 41.36% in 2017-18 to 65.73% in 2018-19. Thereafter, the State managed to reduce the losses marginally to 64.79% in 2019-20 and 60.39% in 2020-21.

The Power Ministry’s data, based on annual ‘Report on Performance of Power Utilities’ by the Power Finance Corporation, further revealed that the maximum aggregate AT&C losses was second highest in Jammu & Kashmir (59.28%), followed by Andaman and Nicobar Islands (51.94%).

Out of 36 States and Union Territories (UTs), 20 were below the national average AT&C loss of 22.32%, while 16 had higher aggregates.

While the India’s average AT&C loss increased from 20.73% in 2019-20 to 22.32% in 2020-21, the Minister said that it is expected to fall to 17% in 2021-22.

The data further showed that discoms in Daman & Diu reported the least AT&C losses of 4.48%, followed by Dadra and Nagar Haveli (5.17%) and Kerala (7.76%).

Among the North-East States, only Assam (18.73%) and Manipur (20.33) had AT&C losses below the national average, while the rest were above the threshold ranging from 29.37% in Sikkim to 44.87% in Arunachal Pradesh. (See table)
Meanwhile, as per Singh’s reply, AT&C loss is one of the key indicators of DISCOMs performance, which includes impact of power theft and illegal electricity connections and theft.

This leads to commercial loss affecting the financial health of the distribution companies with consequential effects like poor quality of power, he said.

The Minister also noted that it is the prime responsibility of the respective Distribution Utilities to take adequate measures to stop power theft.

However, the Government of India supplements the efforts of States/distribution utilities by providing funding for the purpose under various schemes launched from time to time.

Under the Revamped Distribution Sector Scheme (RDSS), Prepaid Smart meters including System metering are important interventions in reducing distribution losses in the power Utilities and in facilitating automatic measurement of energy flows and energy accounting as well as auditing without any human intervention, he added.

Besides, Advanced Metering Infrastructure (AMI), System metering at Feeder (distribution lines) and Distribution Transformer level with communication feature would also be taken up to facilitate proper energy accounting every month for identification of defaulting consumers, theft prone pockets and high loss areas, he maintained.

Further, there are specific provisions in the Electricity Act, 2003 (Section 126 and Sections 135 to 140) relating to theft and unauthorized use of electricity, including stringent penal provisions and speedy trial for such offences by Special Courts (Part XV of the Electricity Act, 2003), he added.

It must be noted here that The Morung Express reported in November 2021 that Nagaland is losing up to Rs 4 per unit of electricity.

Citing official data, it then reported that the state has the widest gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR) in the country of around Rs 3-4, against the NE average Rs 1.5 and 0.41 nationally.

The deplorable revenue showing in Nagaland has been attributed to a variety of factors. Among which is a term known in the energy trade as AT&C Losses— defined as the cumulative financial loss incurred as a result of non-realisation of bills and the loss incurred during long distance transmission and distribution of energy, the report added.